Entering CELG / BMY merger

mwachal

Hi Folks,

I'm considering how to track the merger of CELG into BMY that happened on 11/21/2019. It was a little more complex than a simple stock for stock swap. If you've not been following, here is the deal...

For each share of CELG held, investors received:

• One share of BMY
  
• One contingent value right (CVR) that has the symbol BMYRT
  
• $50
  

In my particular case, I had 240 shares of CELG purchased in six lots of 40, 9, 39, 39, 63, & 89. I'd like to preserve my initial basis but I'm not totally sure how to do that. I was thinking it would look something like...

1. SymbolTransferOut 240 of CELG
   
2. SymbolTransferIn BMY for each lot of CELG and set the ClostBasisOverride column to CELG Basis for the lot - $50
   
3. SymbolTransferIN BMYRT, I'm thinking the cost here is $0.
   
4. Deposit $12,000 for the cash portion.
   

Any one else had to record this transaction?

Mike

VidasMatelis

Mike,

I would do following:
1. Dividend for CELG of 50$ per share with the date day before transfer out.
2. SymbolTransferOut 240 of CELG
3. SymbolTransferIn BMY, adjust cost basis to -50$ and then probably use just 50%
4. SymbolTransferIn BMYRT, cost basis another 50% like BMY

mwachal

Thanks Vidas - I didn't fully understand in #3 the idea of adjust cost basis to -$50 and then use just 50%. Could you clarify?

Mike

VidasMatelis

Mike, lets say CELG original cost was 200$ per share. Then BMY cost could be 75$ and BMYRT cost also 75$ per share, so total 150$ per share - so you adjusted original price: 200-50. Honestly, you could record this in other ways too